An exploration of cost overrun in building construction projects

Tan, Chin Keng and Mansor, Norizzati and Yeoh, Kah Ching (2018) An exploration of cost overrun in building construction projects. Global Business and Management Research: An International Journal, 10 (3 (Special Issue on Business Sustainability in an Era of Digital Disruption)). pp. 638-646. ISSN 1947-5667 E-ISSN 1947-5667

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Abstract

Purpose: Within the context of promoting financial stability of Islamic countries, this study is focusing on the issue of cost overrun in building construction projects in Malaysia, the objectives of this study are to determine causes of cost overrun in building construction projects and to identify the strategies to overcome cost overrun problem in building construction projects. Design/methodology/approach: The data obtained from the questionnaires survey were analyzed by using Statistical Package for Social Science (SPSS) version 20. Findings: The study concludes that design changes and project delays are the major causes of cost overrun in building construction projects. The suggested strategies to reduce these problems are to ensure the project designs are detail, to ensure the design changes are with authorization of relevant project party, to get in-depth information on the complicated parts of a project, and to prepare a detailed material schedule planning in accordance with the scope of works to prevent premature material delivery to site. Research limitations/implications: The findings of the study are based on responses from thirty-two (32) respondents. Practical implications: The study has proposed several strategies to overcome cost overrun problem in building construction projects. Originality/value: The findings of this study has practical value towards the development of the construction industry.

Item Type:	Article (Journal)
Additional Information:	3708/68421
Uncontrolled Keywords:	Cost overrun, construction projects, causes, strategies.
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Architecture and Environmental Design > Department of Quantity Surveying Kulliyyah of Architecture and Environmental Design
Depositing User:	Dr. Tan Chin Keng
Date Deposited:	18 Dec 2018 14:07
Last Modified:	18 Dec 2018 14:07
URI:	http://irep.iium.edu.my/id/eprint/68421

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